Political Shadow of 2025 Lingers
Entering 2026, the Spanish government has yet to emerge from the political turmoil of 2025. Last year, Prime Minister Sánchez’s inner circle was hit hard, with close aides Santos Cerdán and José Luis Ábalos being imprisoned. Furthermore, corruption and sexual harassment scandals within the Spanish Socialist Workers’ Party (PSOE) and the government severely eroded the ruling coalition’s credibility and parliamentary support, leading to the failure of the 2025 budget and sparking an internal party crisis.
Budget Negotiations at a Standstill
At the start of the new year, the government attempted to break the deadlock. Led by Deputy Prime Minister and Minister of Finance María Jesús Montero, negotiations for the General State Budget were restarted. However, this effort has hit a major snag. The coalition’s key ally, the Catalan pro-independence party Junts, has made it clear they will not support the budget until their core demands are met. These demands include making Catalan an official EU language and devolving immigration management powers to the region. However, these conditions are difficult to advance due to opposition from both the EU level and left-wing ally Podemos.
Pressure from Allies and Eroding Trust
Meanwhile, other allies are showing growing impatience with the government. The Republican Left of Catalonia (ERC) and the Basque Nationalist Party (PNV) are both increasing pressure, demanding the government fulfill previously reached political agreements. Allies on the left are increasingly dissatisfied with how PSOE has handled the corruption and sexual harassment scandals, calling for more decisive anti-corruption measures and robust social policies. The government’s inaction, particularly on the worsening housing crisis, has further widened the gap with its partners.
Electoral Pressure and Internal Challenges
Beyond external troubles, Sánchez also faces imminent electoral pressure and internal challenges. In 2026, important regions like Aragón, Castilla y León, and Andalucía will hold elections, and current polls are not favorable for PSOE. Within the party, discontent is brewing; former minister Jordi Sevilla has publicly stated he is considering a challenge to Sánchez’s leadership. Compounded by multiple crises, Sánchez and his government face an even tougher political test in 2026 than in the previous year.
